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13 January 2021
Fort Stanton man pleads guilty to possession of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Christopher Bryant, 47, of Fort Stanton, New Mexico, pleaded guilty on Jan. 12 to possession of child pornography. Bryant will remain in custody pending sentencing.
In the plea agreement, Bryant admitted that on or about Aug. 13, 2020, he used a social media application on his cell phone to obtain images of child pornography and then emailed the images to himself. Bryant also admitted that he knew the images depicted children engaging in sexually explicit conduct and that the images were of real children, rather than computer generated images or adult actors portraying children. “At the time of the offense, Bryant was a detective for the Ruidoso Police Department.”
By the terms of the plea agreement, Bryant will serve three years in federal prison. Bryant must also register as a sex offender.
The case was investigated by the FBI with the support of the Ruidoso Police Department. Assistant U.S. Attorneys Matilda McCarthy Villalobos and Dustin Segovia are prosecuting the case.
Former Houston, Texas Pastor Sentenced to Federal Prison for His Role in a Multimillion-Dollar Investment SchemeRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Kirbyjon H. Caldwell, 67, was sentenced today by United States District Judge S. Maurice Hicks, Jr. to 72 months (6 years) in prison followed by 1 year of supervised release for conspiracy to commit wire fraud. Caldwell was ordered to pay restitution in the amount of $3,588,500, as well as a fine of $125,000.
“The defendants in this case abused the trust that the victims had placed in them,” stated Acting United States Attorney Van Hook. “This defendant used his status as the pastor of a mega-church to help convince the many victim investors that they were making a legitimate investment but instead he took their hard-earned money from them and used it for his own personal gain. This office will continue to investigate and prosecute those who scheme and prey upon the elderly and others.”
Kirbyjon H. Caldwell, the former senior pastor of Windsor Village United Methodist Church in Houston, Texas, had previously obtained a master’s degree from the Wharton School of Business and worked in the financial industry. In the spring of 2013, Caldwell, through his co-defendant, Gregory Alan Smith, from Shreveport, approached Smith’s existing clients and acquaintances about an investment opportunity in historical Chinese bonds. Potential investors were told that they would be obtaining a partial ownership interest in the bonds and that they would receive exponential returns on their investments in a short period of time. Caldwell and Smith neglected to tell these individuals that historical Chinese bonds, bonds issued by the former Republic of China prior to losing power to the communist government in 1949, held no value. In fact, the bonds were considered by the Securities and Exchange Commission to be mere collectables with no value outside of the memorabilia market.
After hearing Smith’s fraudulent pitch, victim-investors who believed and trusted him agreed to invest in these bonds. These victims were provided with a “participation agreement” indicating that if the sale of the bonds failed to occur within a certain number of days, the invested funds would be returned within a defined period of time. They were instructed to wire funds to various bank accounts held by or controlled by Caldwell. In total, in 2013 and 2014, approximately $3.5 million was “invested” in these bond deals.
The funds were then divided between Smith, Caldwell, and others. Caldwell personally received approximately $900,000. Caldwell used a portion of that money to pay down debt including personal loans, mortgages, and credit cards and maintain his lifestyle, among other things. The investors were told their funds were used to purchase bonds and pay for expenses incurred from selling or redeeming the bonds.
As time passed and victim-investors questioned why they had yet to receive the promised returns, Caldwell and Smith, through texts and emails, offered excuses as to why the deals had not yet closed, defended the legitimacy of the deals, and assured the investors that they would receive their promised returns. The victim-investors never received returns from these Chinese bonds.
Caldwell was ordered to report to the Bureau of Prisons on June 22, 2021.
The FBI conducted the investigation and Assistant U.S. Attorneys Seth D. Reeg and C. Mignonne Griffing prosecuted the case.
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Former CFO of Connecticut Healthcare Staffing Agency Pleads Guilty to Federal Tax ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joleen Simpson, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that PAMELA SMITH, 72, of Kirkland, Washington, formerly of Guilford, Connecticut, pleaded guilty yesterday to aiding in the preparation of a false tax return.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Victor A. Bolden occurred via videoconference.
According to court documents and statements made in court, between approximately 2009 and 2018, Smith was the Chief Financial Officer of Equinox Home Care, LLC (“EHC”), a home healthcare staffing agency based in Stratford, Connecticut. EHC was established as a partnership between Theresa Foreman and another individual. In September 2012, the partnership ended, and, by court order, Foreman was obligated to make payments to her partner for the purchase of the partner’s interest in EHC.
At Foreman’s direction, Smith and EHC’s payroll manager helped Foreman receive money from EHC in a manner that hid the fact that Foreman was the true recipient of the funds. Beginning in 2012, EHC’s payroll included payments to “ghost employees” who did not work for EHC, and those funds were actually for Foreman’s benefit. As the CFO of EHC, Smith became aware that the payroll checks were being issued to the “ghost employees” and that EHC and its payroll manager were causing the false payroll checks to be issued. Smith also assisted Foreman by issuing or causing to be issued bonus checks from EHC to approximately 30 EHC employees. The employees cashed the checks and provided the cash to Foreman. Some of the employees later noticed that the amount of funds cashed had been included on their Forms W-2. Smith would issue a corrected W-2 only if an employee made a request. Several EHC employees did not request a corrected W-2 and, as a result, overpaid taxes to the IRS.
In addition, Foreman received funds through cashed mileage checks that were issued to two individuals who did not drive on behalf of EHC.
Smith interacted with the tax return preparer who prepared the partnership tax return in addition to Foreman’s own individual income tax returns, and failed to inform the return preparer about funds that Foreman received through these various mechanisms. More than $600,000 of such funds were not reported on Foreman’s 2014 tax return alone.
At sentencing, Smith faces a maximum term of imprisonment of three years. A sentencing date is not scheduled.
Foreman pleaded guilty to one count of tax evasion and, on January 6, 2020, was sentenced to 12 months and one day of imprisonment and ordered to pay $641,941.46 in restitution.
As part of Smith’s plea agreement with the government, the government submits that approximately $266,000 of the tax loss was foreseeable to Smith as a result of her conduct.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Peter S. Jongbloed.
Former Boston Police Clerk Arrested for Overtime Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A former clerk for Boston Police Department’s (BPD) District A-1 Detectives Unit was arrested and charged today in connection with an investigation of overtime fraud at the Boston Police Department.
Marilyn Golisano, 68, was indicted on one count of embezzlement from an agency receiving federal funds, six counts of wire fraud and one count of aggravated identity theft. She will appear in federal court in Boston later today.
According to the indictment, the investigation revealed that Golisano, who handled the overtime paperwork for her unit, submitted dozens of false and fraudulent overtime slips on which she had forged the signatures of at least three different BPD supervisors. During the period of the alleged fraud, Golisano’s overtime compensation from the BPD more than doubled, increasing from just over $15,000 in 2016 to $26,000 in 2017 and to over $33,000 in 2018. This increase occurred despite the fact that Golisano’s duties did not change, her rate of pay did not significantly increase and no significant new overtime hours were approved by her supervisor. It is alleged that during several overtime shifts that Golisano claimed to be working in downtown Boston, she was actually miles away from Boston according to her cellphone’s geolocation records.
Golisano is alleged to have stolen $11,094 from BPD in 2017 and $18,090 in 2018.
“Rather than working in service of her community, Ms. Golisano did a disservice to taxpayers and to the reputation of her colleagues in law enforcement,” said United States Attorney Andrew E. Lelling. “The vast majority of law enforcement officers serve their communities honorably and with selflessness but, in those instances where public servants cross the line, we will not hesitate to get involved. I applaud the Boston Police Department for their commitment to rooting out corruption, and for their dedication to protecting the City day in and day out.”
“The public needs to know that they can trust law enforcement officials to be honest and trustworthy. Golisano’s alleged fraud and forgery undermines the public’s trust. The DOJ OIG will continue to hold those accountable who try to steal and cheat,” said Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office.
“For years, Marilyn Golisano allegedly forged her supervisor’s signature and submitted scores of fraudulent overtime slips for work she did not do, cheating taxpayers out of at least $29,000. Her self-serving actions have not only eroded the morale of her hard-working co-workers at the Boston Police Department, but have the potential to undermine the public’s trust in civil servants,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We would like to thank the Boston Police Department for bringing this matter to our attention, and for their shared commitment in rooting out public corruption.”
From 2016 through 2018, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of theft of government funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, DOJ-OIG SAC Cunningham and FBI Boston SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Public Corruption Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Border Patrol Agent Charged with Damaging Government PropertyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Eduardo Flores, Jr., 50, of Amherst, NY, was charged by criminal complaint with depredation of government property. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Special Assistant U.S. Attorney Jeffrey T. Fiut, who is handling the case, stated that according to the criminal complaint, shortly before his retirement from the Border Patrol in August 2020, the defendant entered a co-worker’s cubicle space at the Border Patrol Station in Tonawanda, NY, and began to spray and pour a substance throughout the cubicle. As a result, the Customs and Border Protection Office of Professional Responsibility initiated an investigation into Flores’s activities, which included a physical inspection of the cubicle. Over a week after the incident, the cubicle continued to emanate a pungent odor resembling the smell of urine. In order to restore the cubicle to the condition it was in prior to Flores’s actions, Border Patrol hired and paid a cleaning company over $400 to clean the cubicle and its contents.
Flores is scheduled to make an initial appearance on January 19, 2021, before U.S. Magistrate Judge Jeremiah J. McCarthy.
The criminal complaint is the result of an investigation by the Customs and Border Protection, Office of Professional Responsibility, under the direction of Special Agent-in-Charge Vance Kuhner.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Essex County Man Admits Carjacking and Assaulting U.S. Postal Service EmployeeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted assaulting and carjacking at knifepoint a U.S. Postal Service employee, Acting U.S. Attorney Rachael A. Honig announced.
Wallace Johnson, 32, of Newark, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an indictment charging him with carjacking and assaulting a federal employee.
According to documents filed in this case and statements made in court:
Johnson admitted that on June 6, 2020, he walked up to a postal employee who was sitting in the car’s driver seat while on a break from delivering mail in Newark. Johnson held a box cutter against the postal employee’s neck and the box cutter’s blade pierced the postal employee’s skin, causing a small laceration. While Johnson held the box cutter against the postal employee’s neck, he demanded that the postal employee get out of the car and leave everything inside of the car. After the postal employee got out of the car, Johnson got into the car and drove away.
Shortly thereafter, law enforcement officers saw the carjacked car driving at a very high rate of speed and attempted to conduct a car stop, not knowing at that time about the carjacking. During a subsequent car chase, Johnson crashed the car and fled on foot. Several minutes later, during a canvass of the nearby neighborhood, law enforcement officers found Johnson as he hid behind a parked car and then arrested him following a foot pursuit. Law enforcement officers recovered the postal employee’s cellular telephone and the boxcutter that Johnson used during the assault and carjacking.
The charge of assaulting a federal employee carries a maximum potential penalty of 20 years in prison. The charge of carjacking carries a maximum potential penalty of 15 years in prison. Each of these counts carries a maximum fine of $250,000. Sentencing is scheduled for May 18, 2021.
Acting U.S. Attorney Rachael A. Honig credited members of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
El Paso Man Charged Federally with Posting Threats on Social MediaRead the Press Release
In El Paso today, a federal grand jury returned an indictment against 49-year-old El Paso resident Michael Reyes for allegedly posting threats on a social media platform, announced U.S. Attorney Gregg N. Sofer and FBI Special Agent in Charge Luis M. Quesada, El Paso Division.
The indictment charges Reyes with one count of interstate communication with threat to injure. The indictment alleges that Reyes transmitted threatening communications between December 12, 2020 and December 14, 2020. Court records reflect that on December 14, 2020, the FBI received a report that a Parler user posted comments advocating murder and terrorism aimed at federal government officials and other individuals.
Reyes has remained in federal custody since FBI agents arrested him on December 18, 2020. Upon conviction, Reyes faces up to five years in federal prison and a maximum $250,000 fine.
The FBI investigated this case with assistance from El Paso Police Department. Assistant U.S. Attorney Mallory Rasmussen is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
EOIR Announces the Release of a Comprehensive Policy ManualRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the release of its first interactive Policy Manual, the culmination of a multi-year project that represents the agency’s first comprehensive review of its policies. This effort involved cross-component collaboration and the dedication of many employees to identify redundancies, clarify ambiguities, eliminate surplusage, and update policies to reflect current law and practice.
"EOIR is pleased to present this comprehensive and dynamic resource," said Director McHenry. "The Policy Manual provides interested parties with swift access to all existing EOIR operational policies related to case adjudications, without the need to download separate documents. It also contains the first Office of the Chief Administrative Hearing Officer Practice Manual. I am confident the Manual will prove to be a helpful resource for both internal and external stakeholders."
The Policy Manual provides stakeholders with access to all of EOIR’s policies in a single resource, and includes the Immigration Court and Board of Immigration Appeals Practice Manuals, the Office of the Chief Administrative Hearing Officer Practice Manual, and all current agency policy memoranda.
The Policy Manual will be regularly updated, and the most current version of the Manual is available through EOIR’s website.
— EOIR —
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. EOIR’s mission is to adjudicate immigration cases by fairly, expeditiously, and uniformly interpreting and administering the Nation’s immigration laws. Under delegated authority from the Attorney General, EOIR conducts immigration court proceedings, appellate reviews, and administrative hearings. EOIR is committed to ensuring fairness in all cases it adjudicates
Dominican National Sentenced for False Identity CrimesRead the Press Release
BOSTON – A Dominican national who previously resided in Lawrence was sentenced yesterday in federal court in Boston for aggravated identity theft and fraudulent use of a Social Security number.
Robely Eladio De Jesus Guerrero, 32, was sentenced by U.S. District Court Judge Richard G. Stearns to two years and one day in prison. In May 2020, De Jesus Guerrero pleaded guilty to one count of aggravated identity theft and one count of false representation of a Social Security number.
On Jan. 4, 2016, De Jesus Guerrero used the name, date of birth and Social Security number of a U.S. citizen to submit a renewal application for a Massachusetts driver’s license under the victim’s name.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General made the announcement today. Valuable assistance was provided by the U.S. Marshals Service, District of Massachusetts; Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Boston; the Massachusetts State Police; and the Massachusetts Office of Inspector General. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit prosecuted the case.
Denver Man Sentenced to Five Years in Federal Prison for Possession of Firearm While Drug TraffickingRead the Press Release
United States Attorney Jason R. Dunn announced that Alexander Uhey-Medina, 32, of Denver, Colorado, was sentenced to five years (60 months) in federal prison for possession of a firearm in furtherance of a drug trafficking crime. The sentence will be followed by three years of supervised release.
According to facts contained in the plea agreement, on May 26, 2020, Denver police officers were attempting to locate Uhey-Medina for outstanding warrants. They located Uhey-Medina and followed him to a motel in Aurora, where he was taken into custody. Uhey-Medina stated that he had a weapon inside of the backpack he was carrying. An officer searched the backpack and located a loaded firearm, a loaded magazine, three baggies containing methamphetamine, three baggies, each of which contained fentanyl, cocaine, and heroin, respectively, a digital scale, two cell phones, $1,819 cash, syringes, a glass narcotic pipe, and a fentanyl “test strip.”
“Despite challenges from coronavirus, this office is continuing our critical work improving our communities by prosecuting drug traffickers,” said U.S Attorney Jason Dunn. “I commend our law enforcement partners for keeping their laser focus on this mission, which makes a real difference for the people of Colorado.”
“Those that bring illegal drugs into our communities directly disrupt public safety. ATF will continue to work with our law enforcement partners to ensure that any such individuals are brought to justice,” said ATF Special Agent in Charge David Booth.
United States District Court Judge R. Brooke Jackson sentenced Uhey-Medina on January 11, 2021.
This case was investigated by the ATF and the Denver Police Department Firearm Assault Shoot Team (FAST). The defendant was prosecuted by Assistant U.S. Attorney Celeste Rangel.
CASE NUMBER: 20-cr-00155-RBJ
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Defendant Charged in Brooklyn Federal Court with For-Profit Visa Fraud and Alien Smuggling SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Haiyan Liao in connection with a scheme to commit visa fraud, money laundering and illegally bring Chinese nationals into the United States for financial gain. Liao was arrested this morning in Las Vegas, Nevada and will make her initial appearance tomorrow in United States District Court, District of Nevada before U.S. Magistrate Judge Elayna Youchah.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Jeffrey A. Thomas, Deputy Assistant Director of Investigations, U.S. Department of State’s Diplomatic Security Service, announced the arrest and charges.
“As alleged in the indictment, Liao aided and abetted aliens who paid thousands of dollars for her fraudulent immigration services,” stated Acting United States Attorney DuCharme. “The defendant provided fake documents and coached her accomplices regarding how to lie during visa interviews and customs checks. Our Office and our law enforcement agency partners remain vigilant and committed to protecting the integrity of the immigration process and our border security and preventing criminals from seeking profit in the subversion of the rule of law.”
The United States benefits from the rich diversity of culture and experience which results from lawful immigration into our country,” stated Acting Assistant Attorney General Burns. “This defendant, however, is charged with submitting false applications for visitor visas to the U.S. Consulate in Guangzhou and engaging in money laundering as part of a multi-year alien smuggling business that brought Chinese nationals into the United States illegally. This indictment underscores that those who seek to thwart our system of legal immigration to line their own pockets will be prosecuted.”
“The Diplomatic Security Service (DSS) is firmly committed to protecting the integrity of all U.S. visas and travel documents,” stated DSS Deputy Assistant Director Thomas. “This case is the result of a strong partnership among federal law enforcement agencies and DSS’ global network of special agents working together to stop visa and passport crimes, and to stop criminals from earning illegal income by exploiting U.S. visas, passports, and foreign nationals.”
According to the indictment, between January 2014 and December 2015, Liao conspired with others in a scheme to fraudulently obtain visitor visas for aliens from China by submitting applications containing false statements to the U.S. Consulate in Guangzhou, China. In addition, Liao and her co-conspirators obtained fraudulent documents for aliens to present to the Department of State Bureau of Consular Affairs, including fake birth certificates, marriage certificates, national identity cards, property deeds and employment verification purportedly to show they had strong ties to China and were likely to return to their homeland. Liao and her co-conspirators allegedly met with alien applicants and instructed them to falsely answer questions during their visa interviews. For the aliens whose applications were approved, Liao and her co-conspirators facilitated their travel to the United States by purchasing airline tickets, accompanying them on commercial flights and instructing them how to clear customs after they arrived in the United States. The aliens and their families paid the defendant thousands of dollars to obtain the fraudulent visas. Liao and her co-conspirators allegedly wired proceeds of the scheme from China to the United States. Liao’s co-defendant in the indictment, Ned Michael Moriearty, was recently deceased.
The charges contained in the indictment are allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Liao faces up to 20 years’ imprisonment.
This case is being investigated by the Diplomatic Security Service, Criminal Fraud Investigations Unit.
The case is being prosecuted by Assistant U.S. Attorney Nomi Berenson of the Eastern District of New York and Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section.
The Defendant:
HAIYAN LIAO
Age: 43
Las Vegas NevadaE.D.N.Y. Docket No.: 20-CR-500 (SJ)
Columbia Man Sentenced to Year and Half in Federal Prison for Failure to Pay Employment Withholding TaxesRead the Press Release
Columbia, South Carolina ---- United States Attorney Peter M. McCoy, Jr. announced that Rafael Salas, Jr., 52, of Columbia, was sentenced to a year and a half in federal prison after pleading guilty to failing to pay to the government taxes he withheld from his employees’ paychecks. Salas spent the funds for personal expenses and entertainment, including on a boat and at a strip club.
Evidence presented in court established that, from January 2014 through August 2016, Salas owned and operated Moonshiner's Patio Bar and Grill in Lexington, and employed approximately 20 employees during each tax period. While failing to file Moonshiner’s quarterly tax returns and failing to fully pay the company’s employment taxes, Salas withheld trust fund taxes from his employees’ wages. Salas used the withholdings to pay personal expenses including $36,000 for his personal dwelling, $11,000 for a boat and trailer, and expenses of roughly $10,000 at a local strip club.
Salas was also on probation for a 2016 federal conviction for conspiracy to introduce misbranded drugs into interstate commerce at the time of this offense.
“I am thankful for the partnership of the IRS and our U.S. Attorney’s Office to see justice on this case,” said U.S. Attorney McCoy. “We stand ready to continue protecting taxpayers from criminal activity.”
"Employers have a legal obligation to withhold and pay the appropriate amount of taxes for their employees," said Matthew D. Line, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. "The defendant’s federal prison sentencing is clear recognition of the serious consequences awaiting those who skirt this obligation."
United States District Judge Mary G. Lewis sentenced Salas to 18 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Internal Revenue Service (IRS). Assistant United States Attorney T. DeWayne Pearson of the Columbia office prosecuted the case.
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Chinese National Sentenced to 28 Months in Prison for Importing Fentanyl Analogues and Money LaunderingRead the Press Release
NEWARK, N.J. – A Chinese national who held high-level executive positions at chemical and pharmaceutical companies in China was sentenced today to 28 months in prison for drug and money laundering offenses, including the importation of fentanyl analogues into New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
According to the charging documents and statements made in court:
Hao Qin, (a/k/a “John Chin”), 34, of Shanghai, China, was identified as being responsible for importing over 500 kilograms of controlled substance analogues into the United States. Among the substances imported by Qin and his conspirators through Qin’s chemical business were furanyl fentanyl and 4-FIBF, two potent analogues of the opioid drug fentanyl.
Qin also laundered the proceeds of his international drug business, including accepting wire payments designed to pay off a $500,000 drug debt incurred by one of his former clients in the United States.
In addition to the prison term, U.S. District Judge Claire C. Cecchi sentenced Qin to three years of supervised release.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Melissa M. Wangenheim, Chief of the Office’s Opioid Abuse Prevention and Enforcement Unit, and Assistant U.S. Attorney Ryan L. O’Neill, also of the Office’s Opioid Abuse Prevention and Enforcement Unit.
Career criminals sentenced for trafficking fentanyl-laced heroin between Florida and AtlantaRead the Press Release
ATLANTA – William Brown, Ronald Williams, and McLane Ricardo Haddocks III have been sentenced for trafficking and conspiring to trafficking fentanyl and heroin. The three were long-time Florida drug dealers, and both Brown and Williams had been released from prison only a few months before resuming their criminal conduct in Atlanta, Georgia.
“Synthetic opioids such as fentanyl killed tens of thousands of Americans, destroyed countless families, and devastated communities throughout our nation in 2020,” said Acting U.S. Attorney Bobby L. Christine. “The outstanding efforts of the federal law enforcement officers and prosecutors in this district ensures that lifelong criminals like these defendants are brought to justice instead of flitting in and out of state prisons.”
“ATF is committed to working with our federal partners to target those responsible for drug trafficking and gun violence in our communities,” said John Schmidt, Assistant Special Agent in Charge of ATF’s Atlanta Field Division. “This coordinated effort between ATF and our partners demonstrates our continued dedication to identify, target, and investigate criminals who lessen the quality of life in our neighborhoods. The sentences will help ensure these individuals are not able to continue with their illegal activities.”
According to Acting U.S. Attorney Christine, the charges and other information presented in court: In July 2019, ATF agents observed William Brown and Ronald Williams—two multi-convicted felons with lengthy criminal histories in Florida—sell approximately three ounces of fentanyl-laced heroin in the parking lot of an apartment complex in southwest Atlanta, Georgia.
A few weeks later, Brown and Williams met with McLane Ricardo Haddocks, III—a career criminal who had relocated from Florida to Georgia after serving numerous prison terms for trafficking in cocaine, fleeing from police, and violating probation. Brown, Williams, and Haddocks drove to a public storage facility in Stockbridge, Georgia where Williams retrieved a plastic baggie of fentanyl-laced heroin and handed it to Haddocks. Shortly thereafter, while under surveillance by ATF, Haddocks sold approximately five ounces of fentanyl-laced heroin to a government informant in a hotel parking lot.
Williams and Brown took their drug trafficking operation from Florida to Georgia. The drug deal that agents witnessed in July 2019 was committed only three months after Williams’s release from a Florida prison for a gun crime. Williams had previously spent more than a half-decade in prison for trafficking cocaine, violating probation, and unlawful possession of a firearm.
Similarly, Brown had been released from prison in Florida just nine months before the July 2019 drug transaction. He too had spent more than a half-decade in Florida prisons for possession of cocaine, selling cocaine within 1,000 feet of a park, sale of marijuana, armed robbery, aggravated battery, and trafficking hydromorphone.
All three defendants pleaded guilty. They were sentenced by U.S. District Judge Michael L. Brown as follows:
- William Brown, 31, of Jupiter, Florida, was sentenced on January 12, 2021, to 15 years in prison followed by eight years of supervised release.
- Ronald Williams, a/k/a Mandela, 43, of Riviera Beach, Florida, was sentenced on March 9, 2020, to 12 years, seven months in prison followed by six years of supervised release. Additionally, Williams agreed to forfeit his interest in more than $100,000 worth of seized jewelry.
- McLane Ricardo Haddocks III, a/k/a Rick, 43, of Stockbridge, Georgia, was sentenced on December 3, 2020, to five years, 10 months in prison followed by four years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Caldwell Man Sentenced to More Than a Dozen Years for Federal Drug ChargeRead the Press Release
BOISE – Ismael Rodriguez, 41, of Caldwell, was sentenced in U.S. District Court to 151 months in federal prison for possession with intent to distribute methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Rodriguez to pay a $1,000 fine and serve five years of supervised release following his prison sentence. Rodriguez pled guilty to the charge on October 9, 2020.
According to court records, a federal grand jury indicted Rodriguez on April 10, 2019, after Nampa Police Department officers found him in possession of a firearm, over four pounds of methamphetamine, and nearly a pound of heroin. In imposing his sentence, Chief Judge Nye noted that Rodriguez has thirteen prior adult criminal convictions including firearms offenses and robbery, is an admitted gang member, and previously served time in federal prison.
This case was investigated by the Nampa Police Department.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Butler Man Sentenced for Meth Trafficking, Illegal Homemade FirearmRead the Press Release
KANSAS CITY, Mo. – A Butler, Missouri, man has been sentenced in federal court for distributing methamphetamine and possessing a homemade firearm.
Lyle Scott Jennings, 49, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, Jan. 12, to 10 years in federal prison without parole.
On Feb. 10, 2020, Jennings pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possessing an unregistered firearm.
Jennings was stopped by officers from the Bates County, Mo., Sheriff’s Department on two occasions in June 2018. On the first stop, he was in possession of materials used to manufacture methamphetamine; on the second stop, he was in possession of a homemade firearm. Officers searched his residence and found more methamphetamine.
Jennings admitted that he purchased and distributed methamphetamine on a regular basis. He traded a 1997 Camaro for an ounce of methamphetamine and a 1971 Harley Davidson motorcycle for two ounces of methamphetamine. He gave methamphetamine to others to distribute as well.
Jennings also admitted that he manufactured the homemade firearm, a “slam-fire”-type destructive device made from three pieces of pipe and a wrench handle, in June 2018. The device was not registered to him in the National Firearms Registration and Transfer Record.
This case was prosecuted by Assistant U.S. Gregg Coonrod. It was investigated by the Bates County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bus Driver Sentenced to 19 Years in Federal Prison for Child Enticement Offense, Planning Murder of VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE MANUEL SANTOS, 38, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 228 months of imprisonment, followed by seven years of supervised release, for enticing a minor to engage in illegal sexual activity, and for obstructing justice by attempting to have the minor victim murdered.
According to court documents and statements made in court, Santos was employed by Curtin Livery as a bus/van driver in Connecticut with responsibilities that included transporting children going to and from a middle school in Wallingford. In October 2018, law enforcement received information that Santos was sexually soliciting a 13-year-old girl who was a passenger on his route. Analysis of the minor victim’s cell phone records revealed more than 200 text messages or calls between Santos and the victim, a sexually explicit photo of Santos that Santos sent to the minor victim, and multiple messages in which Santos coerced the victim to send him a sexually explicit photo of her.
Santos has been detained since his arrest on November 2, 2018.
In the fall of 2019, while Santos was in federal custody and awaiting trial, Santos engaged an individual and, subsequently, an undercover law enforcement officer, to have the 13-year-old victim murdered to prevent her from testifying against him. In a phone call on December 2, 2019, the undercover officer told Santos that the victim had been murdered. Immediately after receiving the information, Santos asked the undercover officer to begin collecting background information on an Assistant U.S. Attorney who was prosecuting Santos’ case.
On February 20, 2020, Santos pleaded guilty to one count of enticing a minor to engage in illegal sexual activity.
Santos’ criminal history includes convictions for reckless endangerment, assault and larceny offenses. In 2003, he was convicted of offenses related to his running from police, stealing a police cruiser, striking the officer with the car door when the officer attempted to stop him, and dragging the officer as Santos sped off in the stolen cruiser.
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Federal Bureau of Investigation and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Brian P. Leaming.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Boise Man Sentenced for Federal Building Bomb ThreatRead the Press Release
BOISE – Kristopher Allen Wrede, 30, of Boise, was sentenced in U.S. District Court to one year in federal prison for making a telephonic bomb threat, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Wrede serve three years of supervised release following his prison sentence. Wrede pleaded guilty to the charge on October 13, 2020.
According to court records, on February 13, 2020, Wrede was arrested on a Bonneville County warrant for charges that he made terroristic threats. The following day, February 14, Wrede called the Boise Suicide Hotline and informed an employee that he had placed several bombs in the “federal courthouse at 550 W. Fort Street” which would be detonated that weekend. There were no bombs at the courthouse. Wrede willfully made this threat and maliciously conveyed false information concerning an alleged attempt to unlawfully damage or destroy the James A. McClure Federal Building and United States Courthouse by explosives.
This case was investigated by the United States Marshals Service.
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Belle Plaine Man Pleads Guilty to Accessing Child PornographyRead the Press Release
A man who accessed child pornography pled guilty on January 11, 2021, in federal court in Cedar Rapids.
Jared Daily, age 34, from Belle Plaine, Iowa, was convicted of one count of accessing with intent to view child pornography. At the plea hearing, Daily admitted that, between January and June 2020, he used a cell phone to access child pornography, including images of prepubescent children.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Daily was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Daily faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $22,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-73.
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Attempted Murder of Postal Carrier Leads to 16-Year Federal Prison SentenceRead the Press Release
CHICAGO — An Elk Grove Village man has been sentenced to 16 years in federal prison for trying to kill a postal carrier on New Year’s Eve 2018.
CAMERON RUEBUSCH shot the U.S. Postal Service carrier on Dec. 31, 2018, in Elk Grove Village. The mail carrier had recently completed a delivery in the 200 block of West Brantwood Avenue when Ruebusch approached the USPS vehicle and tapped on the front passenger side door. The mail carrier attempted to drive away as Ruebusch fired multiple shots from a handgun. The mail carrier was wounded but survived.
Ruebusch, 25, pleaded guilty last year to one count of attempted second-degree murder of an employee of the United States, and one count of knowingly discharging a firearm during a crime of violence. In handing down the sentence on Jan. 8, 2021, U.S. District Judge Matthew F. Kennelly found that Ruebusch obstructed justice after the shooting by disposing of the gun, discarding the clothing he had been wearing, and instructing friends to lie to law enforcement about his whereabouts.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Elk Grove Village Police Department provided substantial assistance.
“The seriousness of defendant’s crime cannot be overstated — he nearly killed a USPS mail carrier who was merely carrying out his official duties in delivering mail on New Year’s Eve,” Special Assistant U.S. Attorney Chester Choi argued in the government’s sentencing memorandum. “Defendant’s actions were brazen, callous, and cowardly, and demonstrated a complete disrespect for the law.”
Associate of Gambino Organized Crime Family Pleads Guilty to Arson in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, Peter Tuccio pleaded guilty before United States Magistrate Judge Steven L. Tiscione to using fire to commit the felony crime of extortion. When sentenced, Tuccio faces a mandatory sentence of 10 years’ imprisonment, as well as forfeiture, restitution and a fine of up to $250,000.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Tuccio has been convicted of an offense arising from his efforts to extort a local businessman by brazenly chasing him through the streets and then setting his car ablaze,” stated Acting United States Attorney DuCharme. “This Office, together with our partners at the FBI, will continue to vigorously investigate and prosecute members and associates of organized crime to eradicate the danger they pose to our community.” Mr. DuCharme thanked the Federal Bureau of Investigation, New York Field Office, the New York City Police Department and the New York City Fire Department’s Bureau of Fire Investigation for their outstanding work on the case.
In 2015, a businessman who had been extorted by a captain in the Gambino Organized Crime Family (referred to in court filings as “Co-Conspirator 1”) for many years, began avoiding Co-Conspirator 1 in an effort to stop making the $400 annual payment. On December 3, 2015, Tuccio, co-defendants Jonathan Gurino and Gino Gabrielli, who were charged in a separate indictment, observed the businessman leave a smoke shop in Howard Beach, New York and drive away in his 2014 Mercedes Benz. The three men then followed the businessman at a high rate of speed through the streets of Queens and confronted him outside a pizzeria, where Tuccio mentioned Co-Conspirator 1 and commented on the businessman’s car. Tuccio and his co-defendants schemed to set the businessman’s car on fire, sending a message that he had to continue making the extortion payments to Co-Conspirator 1. Later that night, the businessman heard a loud noise and saw that his car was on fire outside of his residence. The businessman’s security video system recorded Gabrielli pouring a substance on the car, the car erupting in flames, and Gabrielli running away with his pant leg on fire. Shortly thereafter, Gabrielli and Tuccio were caught on surveillance video entering Jamaica Hospital. After the arson, the businessman paid more than $5,000 to Co-Conspirator 1.
In August 2016, Gabrielli pleaded guilty to the arson. In June 2020, Gurino pleaded guilty to extortionate collection of credit and extortion. They are awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia E. Moore and Nicholas Moscow are in charge of the prosecution.
The Defendant:
PETER TUCCIO
Age: 27
Queens, New YorkE.D.N.Y. Docket No. 18-CR-610 (S-1) (LDH)
Aroostook County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Houlton man pleaded guilty in federal court today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney Halsey B. Frank announced.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Dylan Begin, 26, and his co-conspirators then distributed the drugs in Aroostook County and other parts of central and northern Maine.
Begin faces up to 20 years in prison and a fine of up to $1 million. He also faces between three years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Aroostook County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Presque Isle man pleaded guilty in federal court today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney Halsey B. Frank announced.
According to court records, between July 2018 and May 2019, Joel Strother, a/k/a “Jody,” 41, and other members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Strother personally made trips to Georgia, Arizona, California and Mexico to obtain methamphetamine, and also recruited and directed others to participate in similar trips. Once they transported the methamphetamine back to Maine, Strother and his co-conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine. Strother also recruited and directed others to distribute the drugs.
Strother faces between 10 years and life in prison and a fine of up to $10 million. He also faces between five years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Arizona Man Sentenced to 20 Years in Interstate Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that Reiko Elio Penunuri, 42, of Arizona, was sentenced today in federal court in Omaha, Nebraska for conspiracy to distribute methamphetamine and for use of facilities in interstate commerce in aid of racketeering. A cellular phone is a “facility” as used in the relevant criminal statute. United States District Judge Brian C. Buescher sentenced Penunuri to 240 months’ imprisonment. There is no parole in the federal system. After his release from prison, Penunuri will serve a 5-year term of supervised release.
During the first few months of 2018, investigators intercepted wire and electronic communications among co-defendant Jasive Zamora-Carrillo, Penunuri, and their co-defendants involving methamphetamine trafficking in the Omaha, Nebraska, and Council Bluffs, Iowa, metropolitan areas. Penunuri was among the persons intercepted and identified during the investigation. During that time, Penunuri, acting in agreement with others, distributed pound and multi-pound quantities to local customers. In furtherance of his methamphetamine trafficking activities, Penunuri traveled interstate between Nebraska, Arizona, and Iowa, and used a cellular phone in interstate commerce.
On June 5, 2018, investigators arrested several members of the drug trafficking organization. Investigators also executed search warrants at several locations and recovered more than 10 pounds of methamphetamine, drug ledgers, bank records, several firearms (including an AR-15 style rifle), and $22,000 of U.S. Currency, which has been forfeited to the United States as drug proceeds. Investigators thereafter learned that Penunuri left the local area and traveled to Mexico on the morning of June 3, 2018. Penunuri, a U.S. Citizen, resided in Hermosillo, Mexico until U.S. Customs and Border Patrol arrested him on September 26, 2019, at a location near Nogales, Arizona.
Ten defendants were indicted in this case and nine have now been sentenced. The remaining fugitive, Jose Cruz Jauregui-Preciado, has yet to be arrested. Several related narcotics and firearms cases were prosecuted in the District of Nebraska and the Southern District of Iowa as a result of the overall investigation. The investigation confirmed that Zamora-Carrillo was a multi-pound methamphetamine trafficker supplied primarily by Penunuri and his cousin, co-defendant Ramon Penunuri-Noriega. Penunuri used a series of Airbnb rentals and storage units located throughout the Omaha area and in Iowa in furtherance of methamphetamine trafficking. Zamora-Carrillo and Penunuri-Noriega were each previously sentenced to 168-month terms of imprisonment.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Kelly praised the efforts of the Drug Enforcement Administration, the Omaha Police Department and other agencies for coming together on this investigation and the resulting prosecutions. Kelly added, “This investigation is a textbook example of successful cooperation among the several federal, state and local law enforcement agencies combatting narcotics distribution and firearms offenses in the Omaha and Council Bluffs areas. Efforts such as these greatly degrade the availability of debilitating narcotics in this region and keep our communities safe.”
DEA Omaha Division Special Agent in Charge Richard Salter, Jr. said, “Today’s sentencing is the culmination of a case in which it was proven once again that drugs and violence go hand-in-hand.” He added, “Reiko Penunuri and his counterparts were dangerous criminals who pushed drugs and brought violence to our communities. Our job at DEA is to rid the streets of these drug dealers who prey on our children and other vulnerable individuals. This case was successful because of the strong partnerships developed between federal, state and local law enforcement agencies and I applaud the hard work of those involved.”
The case was investigated primarily by the Drug Enforcement Administration, Omaha Field Division, the Omaha Police Department, and the Southwest Iowa Narcotics Task Force. The United States Marshals Service in the District of Nebraska was instrumental in locating and facilitating the arrest of Penunuri while he was in fugitive status.
Appellate Court Agrees with Government that Supervised Injection Sites are Illegal under Federal Law; Reverses District Court RulingRead the Press Release
In a precedential opinion, the Third Circuit ruled yesterday that it is a federal crime to open a supervised injection site or “consumption room” for illegal drug use. Local nonprofit Safehouse planned to open the nation’s first such consumption room in the City of Philadelphia, where individuals would be invited to inject heroin and use other drugs under supervision. But the Third Circuit ruled that doing so “will break the law” because Safehouse knows and intends that visitors to its consumption room will have a significant purpose of using illegal drugs. In agreeing with the government’s interpretation of the Controlled Substances Act, the Court explained that, “[t]hough the opioid crisis may call for innovative solutions, local innovations may not break federal law.”
“The Court’s decision re-affirms that ‘safe’ injection sites are a violation of federal law,” said Acting Attorney General Jeffrey A. Rosen. “The Department supports efforts to curb the opioid crisis ravaging this country, but injection sites are not the solution. There are more productive ways to address drug abuse, and today’s ruling by the Third Circuit has confirmed that these sites are illegal and therefore not the answer.”
“The rule of law is still alive and well in Philadelphia – having been re-affirmed by the U.S. Court of Appeals for the Third Circuit, which held that it is a federal crime to open a heroin injection site or ‘consumption room’ for illegal drug use,” said U.S. Attorney for the Eastern District of Pennsylvania William M. McSwain. “The Third Circuit’s opinion is a faithful reading of the statute’s plain language and is consistent with Congress’s intent to protect American neighborhoods from the scourge of concentrated drug use.”
The Controlled Substances Act prohibits any person from knowingly and intentionally maintaining a place for the purpose of illegal drug use. In this appeal, the Government argued that if Safehouse opens a consumption room, knowing and intending that drug users will inject heroin there, Safehouse will break the law. The Court agreed with the Government, holding that Safehouse will violate the law because people will visit its facility with the purpose of using drugs. As the Court explained, though Safehouse will provide other services, “Safehouse’s main attraction is its consumption room.” The Court also held that Safehouse itself has the purpose that visitors use drugs within its “consumption room.” As the Government has argued throughout this suit, it defied logic to suggest that a so-called “consumption room” is not intended to be a place where people consume drugs.
Airline passenger pleads guilty to in-flight assaultRead the Press Release
ALBUQUERQUE, N.M. – Alton James Johnson, 43, of Yuba City, California, pleaded guilty in federal court on Jan. 12 to assaulting two flight attendants while he was a passenger.
According to the plea agreement, on Dec. 23, 2019, during a flight from San Diego, CA, to Albuquerque, Johnson repeatedly touched a female flight attendant up and down her legs. After she told him to stop, Johnson then grabbed the flight attendant inappropriately. When a second flight attendant stepped in and asked Johnson not to touch any flight attendants, Johnson forcefully grabbed the second flight attendant by the arm. Johnson admitting to being under the influence of alcohol but conceded that he was in control of his actions when he committed the assaults.
Johnson will remain in custody pending sentencing. He faces six months in prison.
The FBI investigated this case. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Acting Attorney General Jeffrey A. Rosen's Video Statement on the Seizure of the U.S. CapitolRead the Press Release
Acting Attorney General Jeffrey A. Rosen's Video Statement on the Seizure of the U.S. CapitolActing Attorney General Jeffrey A. Rosen delivered the following video statement on the Seizure of the U.S. Capitol:
"One week ago, our Nation collectively watched in horror as a violent mob stormed the Capitol grounds, broke down crowd control barriers, assaulted Capitol Police Officers, and overran the Capitol complex. Lives were lost. The storming of the Capitol was an intolerable, shocking, and tragic episode in our Nation’s history.
"I am grateful, however, that order was restored at the Capitol and the Congress was able to fulfill its duties under the U.S. Constitution. That afternoon, from the Justice Department, more than five hundred law enforcement officers and agents from the FBI, ATF and the U.S. Marshals rushed to the Capitol. As I watched the events unfolding, I spoke multiple times with DOJ personnel who were onsite, and coordinated with my counterparts across the government. I also heard from Leaders of both the House and Senate.
"In addition, our agents worked with the Capitol police and the Metropolitan police, as well as the other federal, state and local officers who responded on that day to do several things: to neutralize improvised explosive devices (or IEDs), to clear the mob from the Capitol, to search every office for explosives and other dangers, and to return the Chambers to Congress so that they could discharge their duties.
"When Congress then completed its job of certifying the electors, our job at the Justice Department to hold the intruders accountable under the law was just getting started. Some charges were brought the very next day. Those efforts remain active today and will continue on until justice is done.
"In the last week, more than 70 individuals have been criminally charged; we have opened more than 170 investigations; the FBI has gathered more than 100,000 digital tips from the public; and there is a lot more to come. The wrongdoers will be held responsible.
"As we look ahead, we are also aware of other planned protests in and around the upcoming Inauguration. The Department of Justice fully supports, and will protect, the exercise of constitutional rights. But I want to send a clear message to anyone contemplating violence, threats of violence, or other criminal conduct:
"We will have no tolerance whatsoever for any attempts to disrupt the peaceful transfer of power on January 20th that our Constitution calls for. We will have no tolerance for any attempts to forcefully occupy government buildings.
"There is no excuse for violence, vandalism, or any other form of lawlessness.
"To the American public, I ask that, if you are aware of any criminal activity or violent acts being planned, please share what you know with law enforcement or the FBI.
"Along with our other federal partners and local authorities, we will spare no resources in protecting public safety in the coming days. And everyone should understand one key thing: the Department of Justice will seek to hold any violators accountable to the fullest extent of the law. Any wrongdoers will be caught and they will be accountable."
12 January 2021
Woman Pleads Guilty to Arson in the Tahoe National ForestRead the Press Release
SACRAMENTO, Calif. —Sharon Ann Perkins, 39, pleaded guilty today to setting fire to lands owned by the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 15, 2020, Perkins intentionally set two wildland fires in the Tahoe National Forest in Yuba County. At the time, all United States Forest Service lands in California were subject to emergency fire restrictions due to extreme fire behavior across the state. Perkins set the fires using gasoline and articles of clothing. Perkins admitted that she started the fires in an attempt to burn down a travel-trailer in which she and her husband had been illegally camping.
This case is the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Perkins faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Washington, PA Felon Sentenced to 9+ Years for Possessing Heroin, Firearms and AmmunitionRead the Press Release
PITTSBURGH - A former resident of Washington County, PA, has been sentenced in federal court to 112 months of imprisonment on his convictions for violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David Cercone imposed the sentence on Matthew Curtis McCombs, 34, formerly of the City of Washington, Washington County, PA.
According to information presented to the court, in November 2019, Mr. McCombs pleaded guilty to three counts of unlawfully possessing firearms and ammunition by a convicted felon, and one count of distribution and possession with intent to distribute heroin. In connection with the plea, Mr. McCombs admitted that on each of June 14, 2016, September 18, 2016, and September 27, 2016, while in the Western District of Pennsylvania, he unlawfully possessed a firearm and ammunition. Moreover, Mr. McCombs admitted that on April 9, 2014, he unlawfully distributed a quantity of heroin, a Schedule I controlled substance. Federal law prohibits convicted felons from possessing a firearm or ammunition.
In addition to the 112-month term of incarceration, Senior Judge Cercone imposed a three-year term of supervised release upon Mr. McCombs’ release from incarceration.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania State Police, the Monroeville Police Department, and the Washington County District Attorney’s Office for the investigation leading to the successful prosecution of Mr. McCombs.
Visa and Plaid Abandon Merger After Antitrust Division’s Suit to BlockRead the Press Release
The Department of Justice announced today that Visa Inc. and Plaid Inc. have abandoned their planned $5.3 billion merger.
The department filed a civil antitrust lawsuit on Nov. 5, 2020, to stop the merger, alleging that Visa is a monopolist in online debit, charging consumers and merchants billions of dollars in fees each year to process online payments. Plaid, a successful fintech firm, is developing a payments platform that would challenge Visa’s monopoly. According to the complaint, the transaction would have enabled Visa to eliminate this competitive threat to its online debit business before Plaid had a chance to succeed, thereby enhancing or maintaining its monopoly. The case was scheduled for trial in the U.S. District Court for the Northern District of California on June 28, 2021. As a result of Visa and Plaid’s decision to terminate their merger agreement, the United States has filed a Joint Stipulation of Dismissal.
“In a victory for American consumers and small businesses, Visa has abandoned its efforts to acquire an innovative and nascent competitor,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “American consumers and business owners rely on the internet to buy and sell goods and services, and Visa – which has immense power in online debit in the United States– has extracted billions of dollars from those transactions. Now that Visa has abandoned its anticompetitive merger, Plaid and other future fintech innovators are free to develop potential alternatives to Visa’s online debit services. With more competition, consumers can expect lower prices and better services.”
Assistant Attorney General Delrahim continued, “The department is grateful for the team of dedicated civil servants, lawyers and economists, who carefully reviewed this merger and pursued the litigation, ultimately building a case that the merger would extinguish a nascent competitor, further entrench Visa’s dominance in the online debit market, and harm consumers. Their diligent efforts to prosecute this case convinced the parties to abandon the deal rather than face us in court. We wish both companies well as they innovate and work to provide their products to American consumers.”
Visa Inc. is a Delaware corporation headquartered in Foster City, California. Visa is a global payments company that operates the largest debit network in the United States. Visa’s 2019 revenues were approximately $23 billion.
Plaid Inc. is a Delaware corporation headquartered in San Francisco, California. Plaid is a financial services company that operates the leading financial data aggregation platform in the United States. In 2019, Plaid earned approximately $100 million in revenues.
U.S. Attorney's Office Recognizes Law Enforcement Partners for Their Contributions to Department of Justice's MissionRead the Press Release
LAS VEGAS, Nev. — Today, the U.S. Attorney’s Office held its annual Law Enforcement Awards ceremony recognizing federal, state, and local law enforcement partners who have gone above and beyond to support the Department of Justice’s mission. In the face of unprecedented challenges in 2020, law enforcement across Nevada continued putting themselves at risk to protect our communities.
“These awards honor and recognize law enforcement’s outstanding efforts to maintain safety across Nevada,” said U.S. Attorney Trutanich. “Each recipient has made a real, impactful difference in our communities.”
Officers and Agents. The U.S. Attorney’s Office recognized 33 individual members of federal, state and local law enforcement representing 12 agencies throughout Nevada. The award recipients were honored for their contributions and collaboration with the U.S. Attorney’s Office towards protecting national security, fighting public corruption, combatting gun and drug trafficking, preventing financial fraud crimes, and protecting public lands. The recipients came from the following agencies:
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- Bureau of Land Management
- Drug Enforcement Administration
- Clark County Fire Department
- Federal Bureau of Investigation
- Homeland Security Investigations
- Las Vegas Metropolitan Police Department
- Mesquite Police Department
- National Park Service
- Reno Police Department
- Sparks Police Department
- U.S. Postal Inspection Service
Attorney General’s Award for Distinguished Service in Policing – Innovations in Community Policing. The U.S. Attorney’s Office had the honor of presenting the Attorney General’s Award for Distinguished Service in Policing – Innovations in Community Policing to six officers and detectives of the Las Vegas Metropolitan Police Department - Bolden Area Command. The recipients have strengthened community relations while serving as coaches for the Bolden Little League.
The Bolden Little League started with the idea of a free baseball league for children in the community, with police officers coaching the teams for an entire season. Play started in spring 2017, with five teams comprising 70 children between 8 and 10 years old. Since then, the age range has expanded – now allowing children from 6 to 12 – while remaining free for families. Through their efforts, the officers and detectives honored today have built trust and positive relationships with children and their parents. The neighborhoods surrounding the park posted a 76% reduction in violent crime from 2018 to 2019.
Project Safe Neighborhoods Award. For his outstanding work and contributions in support of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, the U.S. Attorney’s Office presented the PSN Achievement Award to Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department. PSN is a critical piece of the Department’s crime reduction efforts, focusing on prosecuting individuals who most significantly drive violence in our communities. PSN also supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
Under Sheriff Lombardo’s leadership, the Las Vegas Metropolitan Police Department continues to set the industry standard on best practices across the country. The Las Vegas Metropolitan Police Department’s Violent Crime Initiative was developed in fall 2017 and was first implemented in January 2018. Sheriff Lombardo’s vision in guiding the Las Vegas Metropolitan Police Department’s efforts have reduced violent crime in our communities by 20% from 2017 to 2019.
The U.S. Attorney’s Office thanks all of the recipients, their colleagues, their families, and agency leadership for their continued commitment to supporting the Department of Justice’s mission.
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U.S. Attorney Wrigley Announces a Carson, ND, Man was sentenced to 14 Years in Prison for Charges of Possession of Child Pornography and Impersonating a Federal OfficerRead the Press Release
Bismarck – United States Attorney Drew Wrigley announced that Robert James Zeller, Age 41 of Carson, ND, has been sentenced to federal prison for Possession of Images Depicting the Sexual Exploitation of a Minor and Impersonating a Federal Officer. Zeller pled guilty to the offenses on October 19, 2020, and was sentenced today by United States District Court Judge Daniel Hovland to 14 years in prison to be followed by 5 years of supervised release on a charge of possession of child pornography and 3 years in prison to be followed by 1 year of supervised release on a charge of impersonating a federal officer. Judge Hovland ordered these sentences to run concurrent with one another.
"The defendant was already a convicted sex offender when he attempted to re-victimized the same minor child by fraudulently posing as an official," said U.S. Attorney Wrigley, "and today’s sentencing underscores the severity of those crimes, aggravated by his recidivism and duplicity."
On November 22, 2018, while Zeller was on supervised release for committing a prior federal sex offense, he engaged in sexual acts with a minor female who had not attained 18 years of age, recorded these sexual acts on a cellular phone; and thereafter, possessed the videos containing the depictions of these sexual acts. Subsequently, on January 28, 2020, the defendant impersonated his federal probation officer, contacted the same minor female, and issued false threats against her in order to trick the minor female into providing him with videos, photographs, and personal information.
This case was investigated by the Grant County Sheriff’s Department, North Dakota Bureau of Criminal Investigation, and Bismarck Police Department and was prosecuted by Assistant United States Attorney Jonathan J. O’Konek.
U.S. Attorney W. Stephen Muldrow Statement on Murder of Three Police Officers in the Line of DutyRead the Press Release
United States Attorney W. Stephen Muldrow released the following statement regarding the fatal shootings of two police officers from the municipality of Carolina, Luis Salamán Conde and Eliezer Hernández Cartagena, and one Puerto Rico police officer, Luis Marrero Díaz:
“I condemn yesterday’s senseless shooting of three police officers in the strongest possible terms. This was an unspeakable act of barbarism, and I was deeply saddened to hear of the loss of these brave officers in the line of duty.
On behalf of all those who serve in the United States Attorney’s Office (USAO), I want to express my heartfelt condolences to the officers’ loved ones and their colleagues. I will make available all of the resources of the USAO and work with other federal law enforcement agencies to assist the Puerto Rico Department of Justice and the Department of Public Safety in the investigation and prosecution of these crimes.
This violent attack underscores the dangers that are routinely faced by those who protect and serve their fellow citizens. We must honor the valor and the sacrifices of all law enforcement officers with a steadfast commitment to keeping them safe. This means building closer bonds between officers and the communities they serve, so that public safety is not a cause that is served by a courageous few, but a promise that’s fulfilled by police officials and citizens working side by side.”
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Two Rivers Man Indicted on Methamphetamine ChargesRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 12, 2021, a federal grand jury returned a three-count indictment against Adam L. Lambrecht (age: 40) of the Two Rivers, Wisconsin.
The indictment alleges that Lambrecht distributed “actual” or “crystal” methamphetamine on three occasion between August 25, 2020, and September 10, 2020, contrary to Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
Each charge carries a mandatory five years’ imprisonment and up to 40 years’ imprisonment on each count. He further faces fines of up to $5,000,000, and from four years to a lifetime on supervised release.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
This case was investigated by the Manitowoc County MEG unit with the assistance of the U.S. Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
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Public Information Officer Kenneth Gales
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Two Marion County Residents Indicted for Drug Distribution and Murder of InformantRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the return of an 11-count superseding indictment charging David Chappell Fey (56, Belleview) and Shari Lynn Gunter (57, Ocklawaha) with the murder of a government witness and conspiracy to murder a government witness. Fey and Gunter are also charged with conspiracy to distribute methamphetamine and fentanyl causing the death of their victim. Fey faces an additional eight counts of distributing methamphetamine and Gunter faces one count of distributing methamphetamine.
The statutory penalties for these offenses include up to life imprisonment and death.
According to the superseding indictment and other court records, Fey and Gunter conspired together and murdered “K.B.” to prevent her from communicating information to law enforcement regarding the distribution of methamphetamine by Gunter and Fey. On April 6, 2016, K.B. was found deceased in her parked vehicle near a cemetery in Oxford, Florida, the victim of an apparent drug overdose. Upon further investigation by local, state, and federal agencies, it was determined that K.B.’s death was not accidental, but that she died from homicide caused by the intentional injection of fentanyl and methamphetamine. K.B. was 31 years old at the time of her death.
In addition to intentionally murdering and conspiring to kill K.B., the superseding indictment alleges that Fey and Gunter conspired to distribute methamphetamine and fentanyl, the use of which resulted in the death of K.B. Fey is separately charged with distribution and possession with intent to distribute methamphetamine on eight different occasions between January 19, 2016, and October 17, 2019. Gunter is charged jointly with Fey in one of the distribution counts, occurring on January 19, 2016.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Drug Enforcement Administration, with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Marion County Sheriff’s Office, the Unified Drug Enforcement Strike Team, the Sumter County Sheriff’s Office, and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Michael P. Felicetta and Tyrie K. Boyer.
Three Charged with Illegally Exporting Goods to IranRead the Press Release
The Justice Department announced today that three individuals have been charged in an indictment with conspiracy to export U.S. goods to Iran in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR), as well as conspiracy to smuggle goods from the United States, and conspiracy to engage in international money laundering.
“The defendants deceived U.S. companies, illegally obtained sensitive U.S. items, and transshipped those items through the UAE to Iran in violation of U.S. law,” said Assistant Attorney General for National Security John C. Demers. “Such actions dilute the effectiveness of sanctions against Iran. The Justice Department is committed to vigorously enforcing U.S. sanctions and to successfully countering the Iranian regime’s destabilizing activity.”
“Since 1979, in order to protect the freedom and security of the American people, the United States has made it illegal to export goods to Iran,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “The deeply disturbing allegations in this case are that the defendants conspired to export highly sophisticated American manufacturing equipment and other American-made items into the arms of the Iranians. We will follow every single lead in this case as we pursue justice against the defendants, and we will continue to help American businesses protect themselves from criminal schemes like this.”
“Homeland Security Investigations (HSI) uses export control statutes to ensure sensitive technologies developed in the United States do not fall into the hands of those that intend to harm Americans or our allies,” said Vance R. Callender, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) in Michigan and Ohio. “Iran has been subject to international sanctions for more than 40 years and has continuously and furtively tried to obtain items that could be used against U.S. soldiers in conflict or Americans abroad. HSI special agents work in cooperation with private industry partners and the Department of Commerce to ensure our country’s national security profile.”
“This indictment demonstrates the Office of Export Enforcement’s continued commitment to enforcing our nation’s export control laws,” said Special Agent in Charge Dan Clutch of the Office of Export Enforcement (OEE) Chicago Field Office. “We will continue to work with our law enforcement partners to counter Iran’s illicit procurement networks that threaten U.S. national security interests.”
Charged in the indictment are:
- Arash Yousefi Jam, also known as Arash Yousefijam, 32, an Iranian national living in Ontario, Canada. Arash Jam was arrested by U.S. authorities on December 23, 2020;
- Amin Yousefi Jam, also known as Amin Yousefijam, 33, an Iranian national living in Ontario, Canada; and
- Abdollah Momeni Roustani, also known as Abdollah Momeni, Ab Momeni, and Amir Amiri, 44, an Iranian national believed to be living in Iran.
According to the indictment, between January 2015 and February of 2017, Arash Jam, Amin Jam, and Abdollah Momeni allegedly conspired with each other and others to obtain goods in the United States and export them to Iran. Specifically, the defendants are alleged to have conspired to fraudulently and knowingly export and send nine electrical discharge boards, one CPU board, two servo motors, and two railroad crankshafts from the United States to Iran in violation of economic sanctions.
The indictment further alleges that as part of the conspiracy, the defendants and their coconspirators planned and acted outside of the United States — in Iran and Canada, among other places — to purchase goods inside the United States to send to Iran. In addition, the indictment alleges that the defendants used third parties to arrange for payment and transportation of the goods. It is further alleged that the defendants intentionally concealed from companies located in the United States the true nature of the ultimate end use and true identities of the ultimate end users of the goods by providing false and misleading information. Finally, the indictment alleges that the defendants caused the goods to be exported from the United States to individuals and entities located in Iran through the United Arab Emirates, without obtaining the necessary licenses, in violation of U.S. law.
If convicted, the defendants face a statutory maximum penalty of five years in federal prison and a $250,000 fine on the export and smuggling violations, and 20 years in federal prison and a $500,000 fine on the money laundering violation.
This case is being investigated by special agents of HSI and the Commerce Department, Office of Export Enforcement. This case is being prosecuted by Assistant U.S. Attorney Hank Moon from the Eastern District of Michigan and Trial Attorney Adam Barry from the Counterintelligence and Export Control Section of the National Security Division. The Justice Department’s Office of International Affairs provided valuable assistance.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent, and the burden is on the government to prove guilt beyond a reasonable doubt.
Texas Company Agrees to Reimburse Medicare for Improper Billing Related to NeurostimulatorsRead the Press Release
LONGVIEW, TEXAS – The United States Attorney for the Eastern District of Texas, Stephen J. Cox announced that Spinal Decompression Clinic of Texas (“SDCT”) has agreed to pay $330,898.00 to resolve liability under the False Claims Act for the alleged improper billing of electro-acupuncture device neurostimulators.
From August 21, 2018 through June 26, 2019, SDCT billed Medicare for the implantation of 41 neurostimulators – a surgical procedure which usually requires an operating room and is reimbursed by federal healthcare programs. SDCT received reimbursement from Medicare in the amount of $177,051.15 for these procedures. SDCT, however, did not perform these surgeries, and instead applied P-Stim devices in an office setting, without surgery or anesthesia. P-Stim is an electric acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away.
Medicare does not reimburse for acupuncture or for acupuncture devices such as P-Stim, nor does Medicare reimburse for P-Stim as a neurostimulator or as implantation of neurostimulator electrodes.
“Falsely submitting claims for non-covered services robs from the Medicare program and thereby deprives those in need from vital resources,” said United States Attorney Stephen J. Cox. “Recovery of improperly paid reimbursements is critical to the long-term sustainability of the Medicare program, and we will do everything we can to ensure that any false claim is quickly recovered.”
“When services provided are excluded from Medicare reimbursement, some providers may be tempted to falsely claim payment for covered treatments. Such schemes, however, can result in hefty fines and prosecution,” said Miranda L. Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “In coordination with our law enforcement partners, we will investigate and hold accountable entities that engage in these practices.”
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services of the Inspector General. Assistant U.S. Attorney Aimee M. Cooper handled the matter.
Three Individuals Charged with Illegally Exporting Goods to IranRead the Press Release
DETROIT – The Justice Department announced today that three individuals have been charged in an indictment with conspiracy to export U.S. goods to Iran in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR), as well as conspiracy to smuggle goods from the United States, and conspiracy to engage in international money laundering.
“The defendants deceived U.S. companies, illegally obtained sensitive U.S. items, and transshipped those items through the UAE to Iran in violation of U.S. law,” said Assistant Attorney General for National Security John C. Demers. “Such actions dilute the effectiveness of sanctions against Iran. The Justice Department is committed to vigorously enforcing U.S. sanctions and to successfully countering the Iranian regime’s destabilizing activity.”
“Since 1979, in order to protect the freedom and security of the American people, the United States has made it illegal to export goods to Iran,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “The deeply disturbing allegations in this case are that the defendants conspired to export highly sophisticated American manufacturing equipment and other American-made items into the arms of the Iranians. We will follow every single lead in this case as we pursue justice against the defendants, and we will continue to help American businesses protect themselves from criminal schemes like this.”
“Homeland Security Investigations (HSI) uses export control statutes to ensure sensitive technologies developed in the United States do not fall into the hands of those that intend to harm Americans or our allies,” said Vance R. Callender, Special Agent in Charge of HSI in Michigan and Ohio. “Iran has been subject to international sanctions for more than 40 years and has continuously and furtively tried to obtain items that could be used against U.S. soldiers in conflict or Americans abroad. HSI special agents work in cooperation with private industry partners and the Department of Commerce to ensure our country’s national security profile.”
“This indictment demonstrates the Office of Export Enforcement’s continued commitment to enforcing our nation’s export control laws,” said Special Agent in Charge Dan Clutch of the Office of Export Enforcement (OEE) Chicago Field Office. “We will continue to work with our law enforcement partners to counter Iran’s illicit procurement networks that threaten U.S. national security interests.”
Charged in the indictment are:
• Arash Yousefi Jam, also known as Arash Yousefijam, 32, an Iranian national living in Ontario, Canada. Arash Jam was arrested by U.S. authorities on December 23, 2020;
• Amin Yousefi Jam, also known as Amin Yousefijam, 33, an Iranian national living in Ontario, Canada; and
• Abdollah Momeni Roustani, also known as Abdollah Momeni, Ab Momeni, and Amir Amiri, 44, an Iranian national believed to be living in Iran.
According to the indictment, between January 2015 and February of 2017, Arash Jam, Amin Jam, and Abdollah Momeni allegedly conspired with each other and others to obtain goods in the United States and export them to Iran. Specifically, the defendants are alleged to have conspired to fraudulently and knowingly export and send nine electrical discharge boards, one CPU board, two servo motors, and two railroad crankshafts from the United States to Iran in violation of economic sanctions.
The indictment further alleges that as part of the conspiracy, the defendants and their coconspirators planned and acted outside of the United States — in Iran and Canada, among other places — to purchase goods inside the United States to send to Iran. In addition, the indictment alleges that the defendants used third parties to arrange for payment and transportation of the goods. It is further alleged that the defendants intentionally concealed from companies located in the United States the true nature of the ultimate end use and true identities of the ultimate end users of the goods by providing false and misleading information. Finally, the indictment alleges that the defendants caused the goods to be exported from the United States to individuals and entities located in Iran through the United Arab Emirates, without obtaining the necessary licenses, in violation of U.S. law.
If convicted, the defendants face a statutory maximum penalty of five years in federal prison and a $250,000 fine on the export and smuggling violations, and twenty years in federal prison and a $500,000 fine on the money laundering violation.
This case is being investigated by special agents of HSI and the Commerce Department, Office of Export Enforcement. This case is being prosecuted by Assistant U.S. Attorney Hank Moon from the Eastern District of Michigan and Trial Attorney Adam Barry from the Counterintelligence and Export Control Section of the National Security Division. The Criminal Division’s Office of International Affairs provided valuable assistance.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent, and the burden is on the government to prove guilt beyond a reasonable doubt.
Suburban Chicago Man Arrested for Allegedly Threatening Violence at Upcoming Presidential InaugurationRead the Press Release
CHICAGO — A suburban Chicago man was arrested today on a federal criminal charge for allegedly threatening to commit violence at the upcoming presidential inauguration in Washington, D.C.
LOUIS CAPRIOTTI, 45, of Chicago Heights, Ill., is charged with transmitting a threat in interstate commerce, according to a criminal complaint filed in U.S. District Court in Chicago. Capriotti was arrested near his home this morning. He is scheduled to make an initial court appearance today at 3:30 p.m. CST before U.S. Magistrate Judge Gabriel A. Fuentes.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Christopher Diiorio, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The U.S. Capital Police provided valuable assistance in the investigation. The government is represented by Assistant U.S. Attorney William Dunne.
In a Dec. 29, 2020, voicemail for a U.S. House member from New Jersey, Capriotti allegedly stated that if certain individuals “think that Joe Biden is going to put his hand on the Bible and walk into that [expletive] White House on January 20th, they’re sadly [expletive] mistaken.” Capriotti further stated in the voicemail, “We will surround the [expletive] White House and we will kill any [expletive] Democrat that steps on the [expletive] lawn,” the complaint alleges. According to the complaint, Capriotti has a history of leaving profane voicemails for members of Congress.
“Our office takes the security of our public servants very seriously,” said U.S. Attorney Lausch. “Individuals who cross the line of free speech by making unlawful threats will be held accountable.”
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Statement of United States Attorney McSwain on Today’s Appellate Ruling in the United States v. Safehouse LitigationRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain issued the following statement regarding the opinion issued by the U.S. Court of Appeals for the Third Circuit this morning:
“I’m pleased to report that the rule of law is still alive and well in Philadelphia – having been re-affirmed by the U.S. Court of Appeals for the Third Circuit, which held that it is a federal crime to open a heroin injection site or “consumption room” for illegal drug use. The Third Circuit’s opinion is a faithful reading of the statute’s plain language and is consistent with Congress’s intent to protect American neighborhoods from the scourge of concentrated drug use. Philadelphia is known around the world as the birthplace of our wonderful nation and of liberty itself. Due to the dedicated work of those at the U.S. Attorney’s Office, it will not be known as the birthplace of heroin injection sites.”
Statement of United States Attorney Kenji M. PriceRead the Press Release
HONOLULU, Hawaii – As authorities address questions about the assault on democracy that occurred last week and hold certain individuals accountable for their egregious behavior, we must also do the preparations necessary to ensure the safety of our communities during the presidential inauguration.
The people of Hawaii should rest assured that the federal law enforcement community will use its resources to prevent harm to our government infrastructure, elected officials, and, most importantly, the people in our communities. Notably, the FBI has established response protocols to address any threats to the safety and security of our communities in connection with the transition of leadership in our country. My office will work hand in glove with the FBI, and any other appropriate law enforcement entity, to ensure that we investigate and bring appropriate charges against anyone who violates federal law in connection with the presidential inauguration. Those who choose to jeopardize the peaceful transition of power, or otherwise unlawfully wreak havoc in our communities, should know that my office will do our part to ensure that they are unsuccessful and that we create a path for them to spend time in federal prison.
Only as a community can we successfully prevent senseless attacks on our democracy. If you have information about any individual or individuals who you believe plan to violate the law, please call 911 or contact FBI Honolulu at (808) 566-4300 or https://tips.fbi.gov.
Statement of U.S. Attorney David C. Weiss on U.S. Third Circuit Court of Appeal Ruling Regarding Former Wilmington Trust ExecutivesRead the Press Release
WILMINGTON, Del. – Today the Court of Appeals for the Third Circuit reversed defendants’ convictions for lying to the Federal Reserve, the SEC, and the public about millions of dollars in past-due loans. In a matter of first impression, the Court held that the government was required to establish that the defendants’ statements were false under any “objectively reasonable” interpretation of the applicable reporting instructions – even in a circumstance where a defendant never believed in that interpretation and intended to lie to the regulators all along. Needless to say, I am disappointed with this result. We are currently analyzing the Court’s opinion and evaluating our options, including, as the Court of Appeals authorized, retrying the defendants for conspiracy and securities fraud.
After the guilty verdict in this case, I described the prosecutors and agents who worked on this case as being among the finest professionals in law enforcement. I stand by that statement today.
St. Croix Man Arrested for Fleeing from Park Rangers After Shots Were Fired on Buck IslandRead the Press Release
St. Croix, USVI – Aneudis Acevedo, 33, of St. Croix, appeared before Magistrate Judge George W. Cannon, Jr., for an Initial Appearance after his arrest by National Park Service Rangers on the charges of Interfering with Agency Functions, Violating a Lawful Order, Disorderly Conduct, and Resisting or Impeding an Officer of the United States.
According to court documents, in the late afternoon of January 10, 2021, shots were fired on Buck Island after a fight occurred on the beach. Immediately after the shots were fired, Acevedo fled the scene in his boat at a high rate of speed while carrying several passengers. He fled from a National Park Service boat, disobeying multiple orders directing him to stop. Ultimately, the United States Coast Guard assisted and took Acevedo into custody. However, at that point the boat passengers were no longer on the boat. A subsequent search of Acevedo’s boat yielded a loaded firearm, a small amount of marijuana, and five cell phones.
The investigation in this matter is ongoing and is being conducted by the National Park Service, the U.S. Coast Guard, and the FBI. Assistant U.S. Attorney Daniel H. Huston is prosecuting the case.
United States Attorney Gretchen C.F. Shappert reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Springfield Man Pleads Guilty to Possession of Stolen FirearmsRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday to possessing three stolen firearms, including a rifle and two revolvers.
Luis Velez, 42, pleaded guilty to one count of possession of stolen firearms. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 2, 2021. Velez was arrested and charged by indictment in January 2020.
On July 5, 2019, Velez was in possession of three stolen firearms: a Savage Arms, Model 25 Walking Varminter, .22 caliber rifle, a Hermann Weihrauch, Model ARM 44, .44 caliber revolver and a Smith & Wesson, Model 625, .45 caliber revolver, knowing or having cause to believe these firearms were stolen.
The charge of possession of a stolen firearm provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorneys Catherine G. Curley and Neil L. Desroches of Lelling’s Springfield Branch Office are prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Solano County Man Pleads Guilty to Unlawfully Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — Steven Michael Roberts, 33, of Vacaville, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 4, 2019, police officers responded to a call reporting that a man had a gun in his waistband. When officers arrived, they identified Roberts based on the reporting party’s description. Officers stopped Roberts, who admitted that he had a gun. Roberts was searched, and officers found a loaded 9 mm pistol in his waistband. Roberts cannot lawfully possess firearms or ammunition because he has previously been convicted of four felony offenses.
This case is the product of an investigation by the Vacaville Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorneys Miriam R. Hinman and Alexis Nelsen are prosecuting the case.
Roberts is scheduled to be sentenced by U.S. District Judge John A. Mendez on April 20. Roberts faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Seven North Carolina Tax Preparers Plead Guilty to Conspiring to Defraud the IRSRead the Press Release
Seven Charlotte, North Carolina tax return preparers pleaded guilty to conspiracy to defraud the United States by preparing and filing false tax returns, announced Principal Deputy Assistant General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge Matthew D. Line of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Joseph Octave and Vonyeda Carson pleaded guilty on Jan. 12, 2021, while Melissa Greene, Natisha Holloman, Kimberly Joline, Whitney Vargas-Medrano and Wendia Courtois pleaded guilty earlier in 2020. In addition to the conspiracy charge, Octave pleaded guilty to one count of aiding and assisting in the filing of false tax returns.
According to court documents and statements made in court, Octave owned and operated Kapital Financial Services, a tax preparation business with two offices located in Charlotte. From 2014 through at least 2019, Octave and certain employees, specifically Carson, Courtois, Vargas-Medrano, Greene, Holloman, and Joline conspired to falsify clients’ tax returns by claiming deductions, business losses, American Opportunity credits, education credits, and earned income tax credits that the clients did not incur, in order to fraudulently increase refunds to be paid by the IRS. Octave trained employees on how to file false returns and provided them with scripts and cheat sheets. Octave instructed employees not to provide clients with copies of their tax returns and not to review the completed tax returns with clients beyond the refund amount. By filing false returns, Octave and his co-conspirators increased their client base and unjustly enriched themselves. As owner, Octave received the largest share of the $700,000 earned by Kapital Financial Services in preparation fees.
U.S. District Judge Max O. Cogburn Jr. will schedule sentencing at a later date. At sentencing, Octave faces a maximum of eight years in prison, and Carson, Courtois, Greene, Holloman, Joline, and Vargas-Medrano each face a maximum of five years in prison. They all also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman, the U.S. Attorney’s Office, and Special Agent in Charge Line commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Caryn Finley and Trial Attorney Brian Flanagan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
San Mateo Man Charged with Distribution of Child PornographyRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Christian Guardado on one count of the distribution of child pornography, announced United States Attorney David L. Anderson and Homeland Security Investigations NorCal Special Agent in Charge Tatum King. Guardado made his initial appearance in federal court on the indictment yesterday.
According to the indictment, Guardado, 24, of San Mateo, is alleged to have distributed a video on or about February 21, 2019, of a minor engaged in sexually explicit conduct.
The government filed a motion, now unsealed, to detain Guardado in custody pending trial. In the motion, the government asserts that Guardado sexually abused a 15 year old male victim during the fall of 2018 and filmed video of the minor victim engaged in sex acts. The government alleges Guardado distributed one of the videos to another adult male, then followed up with the message, “This is some other 15 year old.” The government also alleges Guardado filmed a pornographic video with at least one other suspected underage male victim and sent it to another person in exchange for payment.
The government further states that Guardado traveled to Spain in part because of Spain’s lower age of sexual consent than the United States.
The government also asserts that Guardado contacted other suspected minor victims online on social media applications and that he formerly was associated with a children’s camp.
Investigators are asking anyone who has further information about Christian Guardado or his activities that may be relevant to this case to call Homeland Security Investigations tip line at (866) 347-2423.
Guardado has been charged with distribution of child pornography, in violation of 18 U.S.C. 2252(a)(2). Defendant was arrested on Friday, January 8, 2021, and made his initial appearance in federal court yesterday in San Francisco before United States Magistrate Judge Alex G. Tse. Defendant is currently being held at Santa Rita Jail pending a detention hearing scheduled for January 14, 2021, before United States Magistrate Judge Alex G. Tse.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted on the distribution of child pornography charge, the defendant faces a minimum sentence of five years imprisonment, a maximum sentence of 20 years imprisonment, a supervised release term of five years, a fine of $250,000, a special assessment of $100, possible criminal forfeiture, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Yoosun Koh is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Jasmine Sanders and Daniel Fuentes. The prosecution is the result of an ongoing investigation by Homeland Security Investigations NorCal and the San Mateo Police Department.
Salem Man Arrested on Charges Arising from Fraudulent Tax ReturnsRead the Press Release
BOSTON – A Salem man was arrested today and charged in connection with a fraudulent tax return scheme.
Roosevelt Fernandez, 41, was charged by criminal complaint with one count of wire fraud and one count of aggravated identity theft. Fernandez is scheduled to make an initial appearance today at 1:00 p.m. before Magistrate Judge David H. Hennessy.
According to the charging documents, Fernandez used the identities of various individuals to submit fraudulent state and federal tax returns. A number of these returns included fraudulent W-2 Forms purportedly issued by employers for whom the named taxpayer did not work. Various fraudulent refunds were deposited into an account in the name of Soluciones Multi Service, an entity controlled by Fernandez. It is further alleged that a May 2020 fraudulent Economic Income Payment – stimulus authorized by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) – was deposited into this same account.
Fernandez was allegedly depicted on ATM surveillance footage depositing another fraudulent tax refund check into this account. The investigation uncovered approximately 40 fraudulent tax returns totaling requested refunds that exceed $600,000.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The U.S. Postal Inspection Service and the Massachusetts Department of Revenue provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburgh Water and Sewer Authority Pleads Guilty to Clean Water Act ViolationsRead the Press Release
PITTSBURGH – The Pittsburgh Water and Sewer Authority (PWSA), headquartered in downtown Pittsburgh, has pleaded guilty in federal court to charges of violating the Clean Water Act, United States Attorney Scott W. Brady announced today.
PWSA pleaded guilty to one count of violating its National Pollutant Discharge Elimination System Permit (the NPDES Permit) by discharging sludge into the Allegheny River and to one count of making false statements in written reports about the amount of sludge it was sending to a waste treatment facility before Judge William S. Stickman, IV. Under the terms of the plea agreement, PWSA will agree to adhere to the terms of a comprehensive environmental compliance program.
According to information presented to the Court, PWSA violated its NPDES permit when employees at the Aspinwall Drinking Water Treatment Plant discharged sludge generated during the drinking water treatment process into the Allegheny River. During this process various chemicals are added to water drawn from Allegheny River. These chemicals cause small particles suspended in the water to clump together. Afterwards, the partially treated water was pumped to two large sedimentation basins. The water was transferred back to the Aspinwall Plant where it was subjected to a clarification process. This took place in a facility known as the Clarifier Building, which contains four large concrete basins known as clarifiers. The addition of chemicals to the water promoted the generation of additional clumps of solids which settled on the bottom of each clarifier and were pumped to a large concrete structure located near the banks of the Allegheny River. The solids were referred to as sludge and the large concrete pit was referred to as "the sludge pit," "the ALCOSAN pit," or "FM-5." FM-5 had pipes that led to the Allegheny River and sewer line.
Under the terms of its NPDES Permit, PWSA was only permitted to discharge storm runoff water and water referred to as "clarifier blowdown" into the river. PWSA was not permitted to discharge clarifier sludge into the Allegheny River.
Instead, between 2010 and May 2017, PWSA employees and supervisors at the Aspinwall Plant diverted and discharged sludge into the Allegheny River. By using electronic or manual controls at FM-5, the employees caused the sludge to flow from FM-5 to a discharge point known as Outfall 012 and then into the Allegheny River.
At various points, plumes of discolored water, some of which were several hundred feet long, and solids were visible in the river. Over time, the sludge discharge resulted in a buildup of solids. Employees at the Aspinwall Plant referred to the buildup as an island. Birds were also observed walking on the island when the river levels were low. The river’s current dissipated the island over time, but the island would reappear when new discharges occurred.
PWSA had also been issued a Clean Water Industrial User Permit. Under the terms of this permit, PWSA was permitted to ship a million of gallons of sludge per day to ALCOSAN’s waste treatment facility. The permit required PWSA to determine the daily amount of sludge with flow meters. PWSA installed flow meters at FM-5 and at the clarifier basins. The readings from the meters had to be included in bi-annual reports PWSA was required to submit under the penalties of perjury to ALCOSAN.
The flow meters at two of the clarifier basins broke in or around late December 2014 or early January 2015. The meter at FM-5 also broke and was inactive by early 2016. As a result, PWSA supervisors at the plant instructed the plant’s operators to estimate the amount of sludge flowing from the clarifier basins to FM-5 and from there to the ALCOSAN facility. These estimates were included the reports sent to ALCOSAN. These reports also represented that PWSA’s employees periodically checked the calibration of the sludge flow meters to ensure they were within factory limits. Each report was signed by a PWSA representative as being "true, accurate, and complete."
In July 2019, PWSA’s management obtained approval from PWSA’s Board of Directors for funds in "the amount of $47,852.71 to furnish and install four new flow meters for the sludge valves associated with each of the four clarifiers at the Aspinwall Water Treatment Plant." On January 15, 2020, investigators from the Environmental Protection Agency (EPA), an attorney from the United States Attorney’s Office, and an attorney from EPA, Criminal Investigations were at the Aspinwall Plant to interview employees and tour the facility. Part of the tour included a walk through the Clarifier Building and past the meters. No mention as to the inoperability of the meters was made. The following day, two of PWSA’s employees of informed the investigators and the prosecutors that the meters were broken and had been for years. In February 2020, PWSA replaced the sludge flow meters, more than five years after they broke.
Under the terms of the plea agreement PWSA will be placed on probation for a period of 3 years. In lieu of a fine, PWSA will be required to pay $500,000 into a self-funded Compliance Fund. Under the terms of the plea agreement, PWSA is not permitted to include the fund’s cost in any rate proposal to the Pennsylvania Public Utility Commission. The fund will be used to pay for a comprehensive environmental compliance program to which PWSA must adhere. This program will be subject to the approval of the United States Attorney’s Office and will focus on the production of drinking water; PWSA’s compliance with it NPDES and Industrial User Permits; and the proper storage of chemicals at the plant. The United States Attorney’s Office and the EPA have the right to monitor the plan during PWSA’s probation. PWSA will also be required to provide annual environmental audits to the United States Attorney’s Office and the EPA. These audits will also be available on the Authority’s website for the public’s benefit. PWSA will also be required to install an Environmental Compliance Manager at the Aspinwall Plant. This individual will be authorized to receive complaints and conduct investigations concerning environmental issues occurring at the plant. PWSA is also required to ensure that its employees can report environmental violations without fear of retaliation or retribution.
Sentencing is scheduled for May 18, 2021 at 10:30 am.
Assistant United States Attorney Michael Leo Ivory and Martin Harrell, an attorney with the Environmental Protection Agency, Criminal Enforcement, are prosecuting this case on behalf of the government.
The Environmental Protection Agency conducted the investigation that led to the prosecution of the Pittsburgh Water and Sewer Authority.
Pedophile Sentenced to 20 Years in Prison for Role in Child Exploitation EnterpriseRead the Press Release
LAS VEGAS, Nev. – A pedophile was sentenced Monday to 20 years in prison for his role in establishing a child exploitation enterprise and luring children to an apartment for the purpose of producing child pornography, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
John David Yoder, 49, of Desert Hot Springs, California, previously pleaded guilty to one count of child exploitation enterprise and one count of conspiracy to distribute child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Yoder to a lifetime term of supervised release.
According to court documents, in the spring of 2014, Yoder met co-defendants William Clyde Thompson, Eric Monsivais, and Noland Harper on a website dedicated to pedophilia. Thompson, Monsivais, and Harper conspired to contact at least six children at a skate park in Desert Hot Springs, for the purpose of sexually exploiting them. During the course of the conspiracy, Yoder provided obscene material to further the conspiracy. Thompson, Harper, and Monsivais used some of the children, including Yoder’s child, to recruit others to be part of a “team” Thompson claimed he wanted to sponsor, but with the intention of exploiting them. Yoder rented a house in Desert Hot Springs for the production of child pornography.
Over the course of six months, Thompson produced more than 20,000 images and videos depicting children. Yoder and his co-defendants conspired to exploit the children, produce child pornography, and distribute it. The defendants would distribute the child pornography via paid websites.
In February 2016, Yoder was convicted in Riverside, California, of four counts of lewd acts of a child under 14, two counts each of human trafficking of a child and procuring a child for sex, one count of conspiracy to commit child pornography, and one count of harboring a fugitive.
Co-defendant Thompson, 58, was sentenced to 29 years in prison and placed on a lifetime term of supervised release after pleading guilty to child exploitation enterprise, sexual exploitation of a child, conspiracy to produce child pornography, distribution of child pornography, conspiracy to distribute child pornography, and possession of child pornography.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Christopher Burton and Elham Roohani prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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